Lending money to friends and family can lead to complicated financial situations. When you guarantee a loan, you essentially take on the borrower's debt, which can affect your credit score and financial stability. It's important to recognize that you lack control over another person's financial decisions, unlike banks that have collateral and formal processes in place. If you feel pressured to lend, take your time to evaluate the request. You should always ask for clarity on the purpose of the loan and establish personal lending rules. It’s also essential to know how to say no, as many people struggle with the unpopularity of this response. If you choose to lend, ensure it’s an amount you can afford to lose without jeopardizing your financial goals. Ultimately, protecting your money is paramount, as behavioral carelessness can lead to defaults on loans between friends and family.